Compliance

A jarring anecdote about police threatening foreclosed borrowers seemed an odd choice in a speech by PNC Chairman James Rohr, who was urging banks to better manage their reputational risk.

The number of homeowners who received a permanent loan modification in the third quarter decreased from the prior quarter. Servicers also finalized fewer short sales.

The JPM settlement’s payout ratio compared to losses is less than 7%. The Countrywide settlement offered bond investors a payout ratio of almost 11% of losses, according to Barclays.

Standard & Poor’s, a unit of New York-based McGraw Hill Financial Inc., had argued that its ratings are opinions are protected by the First Amendment of the U.S. Constitution.

The settlement would resolve only a small portion of investors’ losses, opponents say.

The accord still needs approval from trustees overseeing the securities and may be subject to court review.

The GSEs will be lenient when it comes to enforcing the QM rule’s 3% cap.

The ratings agency has replaced a government-insured mortgage-backed securities methodology it revised only two years ago implementing updates likely to be further revised in the future

The bureau alleges that Republic Mortgage purchased unnecessary reinsurance to earn a profit for mortgage lenders in exchange for referrals.

The filing of fraudulent mortgage applications is on the rise. On the surface, it appears as if risk mitigation solutions are not working properly. But vendors and even some lenders disagree.

An out-of-court settlement in Mount Holly, N.J., means that the court will not weigh in on whether the controversial legal theory can be used in fair-lending cases.

Mortgage lenders, servicers and banks need to follow how court procedures for admitting evidence are updated when developing technology systems.

Going back to a “mutual” model and selling off risky bonds could help cue underwriters about how to evaluate risk.

Financial regulators acknowledged Thursday that the data they use to determine fair lending violations in certain cases could be improved, but said they would not stop using such information.

Although many borrowers have been lifted above water on their mortgages due to rising house prices, there are reasons to be skeptical that this will generate much additional spending.

Matthew Sweet, the former vice president and controller of One Bank & Trust, allegedly abused his position at the bank to steal approximately $75,000.

A pre-approval letter should come from a major lender and not some “no name” mortgage broker.

Stonegate Mortgage Corp. executives credit the nonbank’s differentiated mortgage banking platform and their “solid business execution” practices for mitigating risk despite revenue declines amid rising interest rates.

With the new compliance requirements and rules from government entities including the Consumer Finance Protection Bureau, we have now stepped into the age of a new normal.

The companies would be acquired in exchange for about $35 billion in GSE preferred stock, and at least $17 billion in additional funds would be raised from preferred holders and a rights offering.